Merrill A Bank of America Company Merrill A Bank of America Company Open an account Login Open Menu bar Find answers to common questions at MerrillSchedule an Open an accountwith Merrill Consider all your choices and learn if a rollover is right for you Open an accountand roll over your retirement assets Question: Can I roll over or consolidate an existing IRA? Answer: Yes, an indirect rollover occurs when you withdraw assets from an IRA and then roll those assets into the same or another IRA within 60 days.Footnote2 Each option comes with its own pros and cons. Find out all the details, evaluate your choices and decide which one best fits your retirement goals. Select toLearn more about your choices Merrill Edge Self-Directed received a Best in Class award for "IRA Accounts" (for the fifth year in a row) — StockBrokers.com 2024 Annual Broker Review Select toShow StockBrokers.com details Footnote Merrill Edge Self-Directed was evaluated as one of 15 online brokers in StockBrokers.com 2022 Online Broker Review published on January 11, 2022. StockBrokers.com evaluated brokers using 205 variables across 9 categories: Customer Service, Commissions & Fees, Research, Platforms & Tools, Mobile Trading Apps, Offering of Investments, Education, Ease of Use, and Overall. The Best In Class rating recognizes brokers that ranked in the top 5 in that category. Learn more at StockBrokers.compopup. Rankings and recognition from StockBrokers.com are no guarantee of future investment success and do not ensure that a current or prospective client will experience a higher level of performance results and such rankings should not be construed as an endorsem*nt. Select toHide StockBrokers.com details Compare the features of retirement accounts available at Merrill, find out which ones you're eligible for and learn about details like contribution limits and potential tax advantages. Select toTry our Retirement Account selector tool Make your own investments or have Merrill investment professionals invest and rebalance your portfolio for you, with the option to work with an advisor. Learn more about the different IRA accounts at Merrill and find the one that works best for your rollover. Select to learn more aboutTraditional IRASelect to learn more aboutRoth IRASelect to learn more aboutSEP IRASelect to learn more aboutSIMPLE IRA Merrill offers transparent pricing for trades, account services and investment advisory programs. Open an accountand roll over your retirement assets or call us at 888.637.3343 Expand all Learn more about the pros and cons of your choices for rolling over your 401k.Footnote1 You may be able to roll over to a Traditional or Roth IRA, roll over to a 401(k) at a new employer, take a distribution or leave the account where it is, depending on your unique financial needs and retirement goals. Each option presents different benefits and limitations with regard to available investment choices and services, fees and expenses, withdrawal rules, required minimum distributions, tax treatment (particularly with reference to employer stock), and protection from creditors and legal judgments. Additionally, there are limits to how often and when you can rollover your account. Generally you are eligible if you've left your retirement assets with a former employer. Contact your plan sponsor for details. There are no limits to the amount of assets you can roll over from your 401(k), 403(b) or an existing retirement account, but additional contributions can be made to your IRA. If you're currently maxing out your existing 401(k) or 403(b), but would like to contribute more to your retirement, you may want to consider other IRA products. Try our IRA Selector Tool to find the IRA that may be right for you. At Merrill, you'll have access to a full range of investment choices. Select from a wide array of stocks, bonds, options, ETFS, well-known mutual funds and managed portfolios. Your Merrill Edge Self Directed IRA has unlimited $0 online stock, ETF and option trades with no trade or balance minimums.Footnote4 Options contract and other fees may apply* See pricing for details on any fees associated with a Merrill IRA. Your Merrill Edge Self Directed IRA has no minimum balance requirement and no annual account fee. Additional transaction, service or investment fees may apply. With a direct rollover, the check from your employer sponsored plan is made out to the financial institution where you opened your IRA, for the benefit of you. Since this money is deposited directly from the 401(k) or other qualified retirement plan to the IRA, no taxes are withheld. With an indirect rollover, the check is made payable to you. Your former employer withholds a mandatory 20% for taxes. You have 60 days to deposit these funds into an IRA, and must make up the 20% yourself, otherwise the 20% withheld will be considered a taxable distribution and only 80% will have the potential to continue to grow tax-free or tax-deferred. In addition, if you are under age 59½ you may be subject to a 10% additional federal tax, unless one of several exceptions applies. Some companies include company stock as an investment choice. If you have invested in company stock and your stock has grown in value, rather than rolling over the stock when you roll over your 401(k) assets, sometimes taking a "lump-sum distribution" of this stock can save you significant amounts of money. There are a number of variables to consider before you decide the best course of action. We suggest you talk with a tax advisor to help you determine if this could be an appropriate strategy for your situation.Footnote1 It takes just minutes to open your account online. Here's what you'll need: Have questions? Call Merrill at 888.637.3343. Other fees may apply. Sales of ETFs are subject to a transaction fee of between $0.01 and $0.03 per $1,000 of principal. There are costs associated with owning ETFs and mutual funds. To learn more about Merrill pricing, visit our Pricing page. Footnote1 You have choices about what to do with your employer-sponsored retirement plan accounts. Depending on your financial circ*mstances, needs and goals, you may choose to roll over to an IRA or convert to a Roth IRA, roll over an employer-sponsored plan from your old job to your new employer, take a distribution, or leave the account where it is. Each choice may offer different investment options and services, fees and expenses, withdrawal options, required minimum distributions, tax treatment (particularly with reference to employer stock), and different types of protection from creditors and legal judgments. These are complex choices and should be considered with care. For more information visit Should I rollover my 401k page or call Merrill at 888.637.3343. Footnote2 Did you know that there are two ways to move assets from one IRA to another? The most common is a transfer. This is when you transfer assets from an IRA held at one financial institution to an IRA at another. You may directly transfer assets between investment firms as frequently as you wish. The second, less common approach is called An indirect rollover. Rollovers occur when you withdraw assets from an IRA and then "roll" those assets back into the same IRA or into another one within 60 days. IRS rules limit you to one rollover per client per twelve month period. For more information on rolling over your IRA, 401(k), 403(b) or SEP IRA, visit Should I rollover my 401k page or call a Merrill rollover specialist at 888.637.3343. Footnote3 Taxes will reduce the amount you receive. Footnote Merrill waives its commissions for all online stock, ETF and option trades placed in a Merrill Edge® Self-Directed brokerage account. Brokerage fees associated with, but not limited to, margin transactions, special stock registration/gifting, account transfer and processing and termination apply. $0 option trades are subject to a $0.65 per-contract fee. Other fees and restrictions may apply. Pricing is subject to change without advance notice. MAP5782493-08152024 Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. Asset allocation, diversification, and rebalancing do not ensure a profit or protect against loss in declining markets. Merrill, its affiliates, and financial advisors do not provide legal, tax, or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions. This material is not intended as a recommendation, offer or solicitation for the purchase or sale of any security or investment strategy. Merrill offers a broad range of brokerage, investment advisory (including financial planning) and other services. Additional information is available in our Client Relationship Summary (PDF). Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as "MLPF&S" or "Merrill") makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of Bank of America Corporation ("BofA Corp."). MLPF&S is a registered broker-dealer, registered investment adviser, Member Securities Investor Protection (SIPC) popup and a wholly owned subsidiary of Bank of America Corporation ("BofA Corp"). Merrill Lynch Life Agency Inc. (MLLA) is a licensed insurance agency and wholly owned subsidiary of BofA Corp. Banking products are provided by Bank of America, N.A. and affiliated banks, Members FDIC and wholly owned subsidiaries of Bank of America Corporation. Investment products offered through MLPF&S and insurance and annuity products offered through MLLA: Privacy|Security|Glossary|Advertising practicespopupAdvertising Practicespopup © 2024 Bank of America Corporation. All rights reserved. 4326521
appointmentwith MerrillExplore rolling over your retirement assets at MerrillFootnote1
Consolidate your assets plus access tools and investment choices available at Merrill by rolling over your retirement account.
Features of a Rollover
Enjoy potential tax-deferred growth
See all your accounts through a single login
Make contributions to your IRA if eligible
Access investment choices available at Merrill
You have choices when it comes to your old employer-sponsored plan
Your Choices:
Best in Class for 'IRA Accounts'
Which retirement account is right for you?
It's easy to roll over your assets to a Merrill IRA
Decide how you want to manage your IRA account
Discover IRA accounts available at Merrill
Select toLearn more about pricing at MerrillReady to get started?
Frequently Asked Questions
What is the difference between a rollover IRA and a Traditional IRA or Roth IRA?
What are some advantages of rolling over an account?
Am I eligible to rollover funds?
What are the contribution limits during a rollover?
What investment choices will I have?
Are there any fees?
What's the difference between a direct rollover and an indirect rollover?
What if I have company stock in my old 401(k)?
How do I open my IRA?
Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value Are Not Deposits Are Not Insured by Any Federal Government Agency Are Not a Condition to Any Banking Service or Activity
Open a Merrill IRAIt takes just a few minutes to get started once you've decided which type of IRA you're opening. Select toOpen an accountand roll over your retirement assetsTransfer your IRA assetsIf your account is open, use our online transfer tool. Otherwise, call us at 888.637.3343 to get started. Select toUse our online transfer toolStart investingMake your first investments and create the portfolio that works for your retirement needs. Select toLearn more about investing at Merrill
FAQs
Rollover IRA: How to Roll Over Your 401(k) to an IRA? ›
No taxes or penalties: With a direct 401(k) rollover into a traditional IRA, taxes continue to be deferred until you withdraw money. Wider investment selection: You get access to a range of investment options, including stocks, bonds, mutual funds, index funds and exchange-traded funds.
Is there a penalty for rolling over a 401k to a traditional IRA? ›No taxes or penalties: With a direct 401(k) rollover into a traditional IRA, taxes continue to be deferred until you withdraw money. Wider investment selection: You get access to a range of investment options, including stocks, bonds, mutual funds, index funds and exchange-traded funds.
Do you pay taxes when rolling over a 401k to an IRA? ›If you have a traditional 401(k) plan, that means you didn't pay taxes on the money when you contributed it to your account. If you want to move that money into a Roth IRA, you'll have to pay taxes on it. You can roll over from a traditional 401(k) into a traditional IRA tax-free.
How do I report a rollover from 401k to IRA? ›How to Correctly Report Your Rollover
- Report the total distribution from an old retirement account on line 4a of Form 1040 and a distribution from an old 401(k) on line 5a. ...
- Document the taxable amount of the distribution on line 4b or 5b, depending on whether you rolled over an IRA or a 401(k) account.
Sep 11, 2023
Virtually all rollover IRA providers help you do this — many have “rollover specialists” on staff — but the basics are simple: Contact your former employer's plan administrator, complete a few forms, and ask it to send a check for your account balance to your new account provider.
What are the disadvantages of rolling over a 401k to an IRA? ›Any Traditional 401(k) assets that are rolled into a Roth IRA are subject to taxes at the time of conversion. You may pay annual fees or other fees for maintaining your Roth IRA at some companies, or you may face higher investing fees, pricing, and expenses than you did with your 401(k).
What is the process for rolling over 401k to IRA? ›Just take the following five steps:
- Choose a good brokerage to hold your account. ...
- Ask the brokerage and your 401(k) administrator about the transfer process. ...
- Complete the required paperwork. ...
- Get your money into your new IRA ASAP. ...
- Invest your newly deposited funds.
Jul 3, 2024
A taxpayer should not receive a Form 1099-R for a trustee-to-trustee transfer from one IRA to another, but should receive a Form 1099-R for a trustee-to-trustee direct rollover from an employer qualified plan to an IRA with code G.
What if I forgot to report my IRA rollover? ›The 401(k) plan administrator should have sent a Form 1099-R reporting your rollover, if you didn't receive it, or accidentally forgot to report the IRA when you initially filed your tax return, you can report your 401(k) rollover on a Form 1040X: Amended Return.
Should you convert a 401k to an IRA? ›For most people, rolling over a 401(k) (or a 403(b) for those in the public or nonprofit sector) to an IRA is the best choice. That's because a rollover to an IRA offers: More control over your portfolio and more personalized investment choices. Easier to get up-to-date information about changes.
Where can I transfer my IRA without paying taxes? ›
Trustee-to-trustee transfer – If you're getting a distribution from an IRA, you can ask the financial institution holding your IRA to make the payment directly from your IRA to another IRA or to a retirement plan. No taxes will be withheld from your transfer amount.
What is the difference between a rollover and a transfer? ›A transfer occurs when you instruct your custodian to move your assets from your current IRA to an IRA at another institution. A rollover, on the other hand, involves transmitting retirement assets to an IRA from a different type of account, like a 401(k) or 403(b). The IRS also treats them differently.
Do seniors pay taxes on IRA withdrawals? ›Age 59½ and over: No Traditional IRA withdrawal restrictions
In other words, you will now owe the taxes that you originally deferred.
There is usually no transfer fee for rolling over your 401(k) into a new tax-advantaged retirement account. Account fees for your new account might be higher than the ones for your old account. Rolling over a 401(k) to an individual retirement account (IRA) is often the way to go to reduce fees.
Does rolling over a 401k to a traditional IRA count as a contribution? ›I rolled over money from a 401k to a traditional IRA. No, a rollover doesn't count as an IRA contribution. If you have code G in box 7, indicating a direct rollover, then please see these steps: Click on "Search" on the top right and type “1099-R”
Is there a time limit to rollover 401k to IRA? ›If a distribution is made directly to you from your retirement plan, you have 60 days from “the date you receive” a retirement plan distribution to roll it over into another plan or an IRA, according to the IRS.
How do I avoid 20% tax on my 401k withdrawal? ›Deferring Social Security payments, rolling over old 401(k)s, setting up IRAs to avoid the mandatory 20% federal income tax, and keeping your capital gains taxes low are among the best strategies for reducing taxes on your 401(k) withdrawal.